Additional information:

1. The final dividend which was declared in respect of the 2020 financial year was paid on 5 November 2020.

2. The directors declared an interim dividend of R0.17c per share to all the registered shareholders on 30 April 2021. 3. On 1 July 2021, the directors offered 500 000 ordinary shares to the public for subscription at R4.00 per share. The closing date for applications was 30 August 2021. Emusk received applications for 500 000 shares. On 15 September, the directors of Emusk allotted ? ordinary shares to the public. The cost arising from the issue of shares were R190 000 (excluding VAT) in respect of the ordinary shares sold to the public and these were paid on 15 September 2021.

4. On 31 October 2021, Emusk declared a final dividend of 14c per ordinary share. The dividend will be paid on 30 November 2021.

5. Emusks unissued authorised share capital on 31 October 2021 comprises 3 600 000 par value shares of R2.50 each.

6. The tax expense for 2021 was reliably calculated at R3 010 000.

7. The profit before tax of Emusk was reliably calculated at R8 580 000. 8. VAT is levied at 15% and all the entities that Emusk transacts with are registered VAT vendors unless otherwise stated.

REQUIRED:

a) Prepare all the necessary journal entries to account for the information given in the additional information in the financial records (general journal) of Emusk for the financial reporting period ended 31 October 2021. (21)

b) Present the statement of changes in equity of Emusk for the financial year ended 31 October 2021. (11)

c) Prepare the share capital note disclosure in the notes to the financial statements of Emusk for the financial year ended 31 October 2021. (6)

d) What balance should be left on the Application and Allotment account in the general ledger after the share issue is concluded? Motivate your answer. (2)

company based in Pretoria and is listed on the JSE and is a registered VAT vendor. It was incorporated on 1 January 2013 and has a financial year end of 31 October: The accountant of Emusk (Mrs. Elon) requires assistance with financial reporting issues. Below is an extract of balances of Emusk as at 31 October 2021 that was provided to you by Mrs Elon